Due to the considerable concern and uncertainty surrounding the DBA Act, self-employed workers and clients are being given more time to adapt to this legislation. Enforcement has been suspended until at least 1 January 2018. Further clarity on whether this suspension will be extended is expected before 7 July 2017.
Enforcement suspended
Until at least 1 January 2018, the Tax and Customs Administration will not impose any additional tax assessments, fines or obligations to make corrections in respect of payroll taxes if it is subsequently established that an employment relationship did, in fact, exist between a self-employed person and a client. The only exception to this is in cases of obvious malice. In such cases, a situation of bogus self-employment has been deliberately created, whilst in reality an employment relationship exists. In such situations, the Tax and Customs Administration will take enforcement action.
Research into labour legislation
One of the reasons for the Tax and Customs Administration’s suspension of enforcement is an investigation into how the concepts of ‘authority relationship’ and ‘free substitution’ can be defined in more concrete terms and brought more into line with current societal views on employment relationships. That investigation is now nearing completion.
Greater clarity
As the results of this study are due to be published shortly, State Secretary Wiebes of Finance intends to provide further clarity on the next steps before the House of Representatives’ summer recess. It will then also become clear whether enforcement will be suspended beyond 1 January 2018. In any case, clients and contractors must be given sufficient time to adapt.